The place of the employed in the "new poor" category

Tornike Osadze

Journal number 1 ∘ Tornike Osadze ∘
The place of the employed in the "new poor" category

journal N1 2025

Expanded Summary

Among the social groups, the place of the "new poor" is most marked in the working class, who represent the "working poor" in the traces of modernity. The "new poor" is a very complex and diverse category, which shows its social and economic content in different ways based on the example of different countries. This category, as well as poverty in general, changes over time, which is reflected in the fact that the social classes included in the mentioned social group can experience formation, change in structural composition, increase or decrease in numerical index.

An important place in modern socio-economic relations is occupied by the class of employees, which contributes to the formation of the middle class. Accordingly, employment should ensure the formation of the middle class, the supporting force of the economy, although the real picture is markedly different from the existing one.

Employment and the incomes derived from it are the sphere reflecting the functioning of the market economy, socio-economic, political and demographic processes in the society. This phenomenon is especially manifested against the background of income from employment, when the remuneration is not enough to create proper living conditions. An employee, despite his work, falls into a vicious circle of poverty. This form of poverty is associated in the modern world as a category of "new poor".

An issue no less acute than unemployment is the increase in the number of working poor. Working poor This is a category of people who work, but their income is so low that they live in poverty. We have a systemic content problem that also requires a systemic approach.

Unemployment in Georgia is one of the most problematic and difficult to solve issues, however, along with unemployment, the issue of the unchanged financial status of employed people does not lose its relevance. According to the data of the National Statistics Service, the wages of employed people are increasing from year to year, although the real picture is different and proves the opposite. The current real picture is determined by the devaluation of the national currency and the low purchasing power of the GEL. All this is mainly due to the low rate of economic growth.

The ongoing political-economic changes in Sakrtvelo and the implemented privatization policy have led to a decrease in the role of the state in relation to social equality and public goods, such as welfare distribution, employment, housing policy, education, health care, etc. In such a situation, already existing problems became the subject of individual care. Today, the citizen has to deal with unemployment himself and fight for self-preservation. Employees in Georgia face various challenges such as stability and related financial security. In Georgia, "temporary employment" is becoming relevant, which can cover several days or months, therefore, a person employed in the informal or unstable sector can be unemployed at any time. There is also no unemployment insurance and unemployment benefit system in the country.

Due to modern challenges, having a job is often not enough to get out of poverty, as mentioned above. For this, it is necessary to conduct a systematic and well-thought-out economic policy both within the country and at the level of an individual or household. This means that in order to overcome "collective poverty", the efforts and actions of an individual are of great importance, to take the right steps, which will be calculated in time and focused on the final result.

Although the reduction of poverty continues, but at a slower pace compared to earlier data, which shows an unfavorable picture in the future. It is necessary to speed up the rates of economic growth, which should be felt by all active areas, and the final result should be reflected in the well-being of people. Economic growth should not only be expressed in numbers and it should definitely have a positive effect on people's daily lives.

In addition, poverty in urban settlements is lower and declining faster than in rural areas. On the one hand, this is due to the low rate of rural employment or the high share of the self-employed, which makes "in-work poverty" appear even more dramatic. GDP growth and increased government revenues contribute to the eradication of poverty and the reduction of inequality. In the short term, an increase in social payments leads to more households. From poverty, however. In the medium and long term, prioritizing investments in health and education will help reduce poverty and improve overall well-being.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 1 ∘ Tornike Osadze ∘ The place of the employed in the "new poor" category journal N1 2025 Expanded Summary Among the social groups, the place of the "new poor" is most marked in the working class, who represent the "working poor" in the traces of modernity. The "new poor" is a very complex and diverse category, which shows its social and economic content in different ways based on the example of different countries. This category, as well as poverty in general, changes over time, which is reflected in the fact that the social classes included in the mentioned social group can experience formation, change in structural composition, increase or decrease in numerical index. An important place in modern socio-economic relations is occupied by the class of employees, which contributes to the formation of the middle class. Accordingly, employment should ensure the formation of the middle class, the supporting force of the economy, although the real picture is markedly different from the existing one. Employment and the incomes derived from it are the sphere reflecting the functioning of the market economy, socio-economic, political and demographic processes in the society. This phenomenon is especially manifested against the background of income from employment, when the remuneration is not enough to create proper living conditions. An employee, despite his work, falls into a vicious circle of poverty. This form of poverty is associated in the modern world as a category of "new poor". An issue no less acute than unemployment is the increase in the number of working poor. Working poor This is a category of people who work, but their income is so low that they live in poverty. We have a systemic content problem that also requires a systemic approach. Unemployment in Georgia is one of the most problematic and difficult to solve issues, however, along with unemployment, the issue of the unchanged financial status of employed people does not lose its relevance. According to the data of the National Statistics Service, the wages of employed people are increasing from year to year, although the real picture is different and proves the opposite. The current real picture is determined by the devaluation of the national currency and the low purchasing power of the GEL. All this is mainly due to the low rate of economic growth. The ongoing political-economic changes in Sakrtvelo and the implemented privatization policy have led to a decrease in the role of the state in relation to social equality and public goods, such as welfare distribution, employment, housing policy, education, health care, etc. In such a situation, already existing problems became the subject of individual care. Today, the citizen has to deal with unemployment himself and fight for self-preservation. Employees in Georgia face various challenges such as stability and related financial security. In Georgia, "temporary employment" is becoming relevant, which can cover several days or months, therefore, a person employed in the informal or unstable sector can be unemployed at any time. There is also no unemployment insurance and unemployment benefit system in the country. Due to modern challenges, having a job is often not enough to get out of poverty, as mentioned above. For this, it is necessary to conduct a systematic and well-thought-out economic policy both within the country and at the level of an individual or household. This means that in order to overcome "collective poverty", the efforts and actions of an individual are of great importance, to take the right steps, which will be calculated in time and focused on the final result. Although the reduction of poverty continues, but at a slower pace compared to earlier data, which shows an unfavorable picture in the future. It is necessary to speed up the rates of economic growth, which should be felt by all active areas, and the final result should be reflected in the well-being of people. Economic growth should not only be expressed in numbers and it should definitely have a positive effect on people's daily lives. In addition, poverty in urban settlements is lower and declining faster than in rural areas. On the one hand, this is due to the low rate of rural employment or the high share of the self-employed, which makes "in-work poverty" appear even more dramatic. GDP growth and increased government revenues contribute to the eradication of poverty and the reduction of inequality. In the short term, an increase in social payments leads to more households. From poverty, however. In the medium and long term, prioritizing investments in health and education will help reduce poverty and improve overall well-being.